When you run your own business, it’s easy to focus on day-to-day expenses and overlook your long-term financial health. Bills are paid, the business is growing, and you’re investing time and energy into making sure it thrives. But as a woman in business, it’s crucial to pause and consider a big question: When planning for the future, do you know what your money is up to?
You might ask yourself:
- Do I have enough to stop working when I’m ready?
- How much is enough?
We often avoid these questions, hoping everything will work out in the end. However, many of us will reach a point where we wish we’d started planning sooner.
Why women in business need a financial plan
According to the latest research, women are impacted by the gender pension gap. By age 55, a woman’s private pension is, on average, 35% lower than a man’s. This comes from multiple factors, including time taken off work for caregiving – raising children, managing households, and caring for elderly relatives – all valuable yet often unpaid contributions.
Add in the fact that women tend to live longer, and it becomes even clearer why proactive financial planning is essential. As a female entrepreneur, the need to take control of your financial future is even more pressing.
You not only need to secure a retirement income, but you also have the power and responsibility to turn your earnings today into future security.
What steps can you take?
Break free from the financial autopilot.
It’s easy to let finances coast along when things are going smoothly. Bills get paid, and maybe there’s enough to splurge on new books every now and then!
As long as everything feels balanced, you feel like you’re doing okay. However, coasting doesn’t help you move forward financially, and it certainly doesn’t build long-term security.
You need to get intentional about your money and make sure it’s doing more than simply getting by.
Take a good look at your current financial position. Review your savings, investments, and any pensions or retirement plans. Look beyond monthly balances and ask yourself if you’re actively working towards a future where you can decide when and how you want to work.
Define what ‘enough’ means to you.
One of the hardest parts of financial planning is determining how much is enough.
- What does your ideal future look like?
- How much will it cost to live that way?
Visualise your financial goals, from enjoying a fulfilling ‘Refirement’ to having the freedom to scale back your business when you choose.
Ask yourself the following questions:
- What would a comfortable retirement look like for you? (Consider housing, healthcare, and everyday expenses.)
- Do you want to have funds set aside for travel, new ventures, or passions outside of work?
- Would you like to pass on any wealth to children or a charity?
When you know what your ‘enough’ looks like, you can work backwards to set savings and investment targets that will help you achieve them.
Start small, but start now!
You don’t have to make any big financial changes overnight, but taking small, consistent steps can make a world of difference. Here are a few simple ways to begin:
- Automate your savings – set up a monthly direct debit for your savings or investment account each month. Even a small amount builds up over time.
- Consider a pension plan – if you’re self-employed, look into private pension options or a self-invested personal pension (SIPP).
- Seek financial advice – an advisor can help you understand your current position, set realistic goals, and explore tax-efficient options.
Life is unpredictable, and so is business. Financial planning needs to be about setting goals as well as building flexibility. It’s essential to have a plan that allows you to navigate life’s ups and downs, whether that’s a shift in your business or an unexpected personal expense. Building an emergency fund, understanding investments, and keeping an open mind can help you stay resilient in the face of change.
Become your own financial advocate.
Taking control of your money means securing your future and empowering yourself. When you do this, you also inspire other women in business to do the same. By prioritising your financial health, you’re setting a standard showing how and why female entrepreneurs can and should advocate for their financial security.
As women in business, we often balance multiple roles, and long-term financial planning can feel like one more responsibility on a never-ending list. But remember, every small step you take today is an investment in your future self.
When you take control of your money, you’re making room for the freedom to make choices, seize opportunities, and live life on your terms.
So, what’s your money up to?
Are you ready to learn more about your money mindset?
Join us on Friday November 15th, at our Harborne session, where Harriet Horwitch-Smith will share her top tips. She will explore the importance of planning for the future, taking control of your finances, and making your money work efficiently.
Tickets are available here: https://sociallyshared.co.uk/events/#!event/2024/11/15/socially-shared-harborne-money-mindset-plan-for-the-future
Feel Supported in Your Business with Socially Shared
Interested in joining the Socially Shared Women’s Business Support Network? Our affordable annual membership is £99 and includes many benefits to help your business thrive. Find out more via our website.
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- Online Business Directory Page
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